Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/USD Technical Analysis: Short Position Back in Play

EUR/USD Technical Analysis: Short Position Back in Play

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Short at 1.0926
  • Euro stalls at familiar resistance below 1.10 figure vs. US Dollar once again
  • Short position triggered, looking for another rejection at falling channel top

The Euro has stalled at familiar falling channel top resistance capping attempts at building upside momentum against the US Dollar since early December 2015. The anti-risk currency has failed to mount a sustained upside push even amid heavy risk aversion since the beginning of the year.

Near-term support is at 1.0778, the January low, with a break below that on a daily closing basis opening the door for a test of the 1.0694-1.0711 area marked by the falling channel floor and the January 5 bottom. Alternatively, a push above the 38.2% Fibonacci retracement at 1.0974 paves the way for a challenge of the 50% level at 1.1115.

Risk/reward considerations looked attractive to attempt another short position in line with our 2016 fundamental outlook and we have sold the pair at 1.0926, initially targeting 1.0829. A stop-loss will be activated on a daily close above 1.0974. We will book profit on half of the position and trail the stop-loss to the breakeven level once the first objective is reached.

Want our quarterly forecast for the Euro? Get it here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.